A supply chain is made up of all those processes involved directly or indirectly in the action of satisfying supply needs. It includes suppliers (first, second and third level), MP warehouses (raw materials - direct or indirect), the production line, Finished Products warehouses, distribution channels, wholesalers, retailers and the end customer.
Within each organization there is a different supply chain depending on the type of business. There are three types of companies: industrial, marketing and services. Service companies have very short supply chains. Industrial companies have supply chains with a lot of logistics depending on the MP they use, the production lines they have and the market segments to which their products are directed. Trading companies, for example, have very little use of inventories so their supply chains are less elaborate.
All functions participating in the supply chain are intended to receive and fulfill a customer request. These functions include, but are not limited to, new product development, marketing, operations, distribution, finance, and customer service.[1].
Proper Supply Chain management enables key company processes related to costs, availability and quality to increase margins and make your supply chain strategy a reality. In this way, a demand-driven supply chain will be created, which places the customer at the center of it and allows it to respond quickly to changes without reducing its margin.[2].
Origin of the term “supply chain” and definitions
The term "supply chain," also known as "supply chain,"[3] entered the public domain when Keith Oliver), a consultant at Booz Allen Hamilton, used it in an interview with the Financial Times in 1982. It took time to catch on and remain in the business lexicon, but by the mid-1990s a large number of publications on the subject began to appear and it became a regular term in the names of companies. the positions of some officials.[4][5][6].
David Blanchard defines the supply chain as: The sequence of events that cover the entire life cycle of a product or service from when it is conceived until it is consumed.[6].
The "Supply Chain" is not limited to manufacturing companies, but has been expanded to include both "tangible products" and "intangible services" that reach the consumer,[7] which in turn require product and service inputs.
Supply Network Design
Introduction
A supply chain is made up of all those processes involved directly or indirectly in the action of satisfying supply needs. It includes suppliers (first, second and third level), MP warehouses (raw materials - direct or indirect), the production line, Finished Products warehouses, distribution channels, wholesalers, retailers and the end customer.
Within each organization there is a different supply chain depending on the type of business. There are three types of companies: industrial, marketing and services. Service companies have very short supply chains. Industrial companies have supply chains with a lot of logistics depending on the MP they use, the production lines they have and the market segments to which their products are directed. Trading companies, for example, have very little use of inventories so their supply chains are less elaborate.
All functions participating in the supply chain are intended to receive and fulfill a customer request. These functions include, but are not limited to, new product development, marketing, operations, distribution, finance, and customer service.[1].
Proper Supply Chain management enables key company processes related to costs, availability and quality to increase margins and make your supply chain strategy a reality. In this way, a demand-driven supply chain will be created, which places the customer at the center of it and allows it to respond quickly to changes without reducing its margin.[2].
Origin of the term “supply chain” and definitions
The term "supply chain," also known as "supply chain,"[3] entered the public domain when Keith Oliver), a consultant at Booz Allen Hamilton, used it in an interview with the Financial Times in 1982. It took time to catch on and remain in the business lexicon, but by the mid-1990s a large number of publications on the subject began to appear and it became a regular term in the names of companies. the positions of some officials.[4][5][6].
David Blanchard defines the supply chain as: .
The Mexican Association of Logistics and Supply Chain A.C. (AML) defines "Supply Chain" as:.
Supply chain is a dynamic system of organizations interconnected by process flows that involve material, financial, human and information resources, which favors the collective intelligence of its members through the use of logistics, to achieve
fluid coordination and collaboration in the synchronization of processes that seek to satisfy the requirements of the final consumer, maximizing the total value created for the organization on a continuous basis.
Internally, in a manufacturing company, the Supply Chain connects the entire Organization but especially the commercial functions (Marketing, Sales, Customer Service) of supply of inputs for production (Supply), production (Production Control, Manufacturing) and storage and distribution of finished products (Distribution), with the objective of aligning internal operations towards customer service, reducing cycle times and minimizing the capital necessary to operate.
The Supply Chain, like all the activities of the Organization, accepts the existence of innovative Philosophies and incorporates them into its work, so it is easy to find terms strengthened by them such as "Lean Supply Chain Management"[8] or "Lean six Sigma Logistics".[9].
Macro processes and functions of the Supply Chain within a Company
According to Sunil Chopra and Peter Meindl,[1] the macro processes within a manufacturing or service company or organization and the sub-processes they include are:
The functions that make up the internal Supply Chain in a manufacturing company are:.
There is no consensus about whether or not these 5 functions should report hierarchically to the same Management / Direction, but there is consensus in the sense that they must operate in coordination so that the internal Supply Chain (or internal Logistics) is efficient and effective.
Synchronization is very important in these chains so that waste does not occur, measured as inventory, time or customer service failure.[11] It helps to have a good prediction of demand to avoid causing surpluses or shortages of finished products. A failure in this prediction will cause a so-called bullwhip effect (also called bullwhip effect). Therefore, it is said that the impact of an action on a supply chain is directly proportional to its delay in the propagation of communication.
Real-time tracking in cargo logistics offers many benefits for companies. By optimizing routes, effectively managing fleet, reducing costs, improving visibility, optimizing inventory management, improving customer satisfaction, streamlining processes, making data-driven decisions, reducing risk, and improving collaboration, this technology can transform your supply chain and give you a competitive advantage.[12] Investing in real-time tracking can help you improve operational efficiency, reduce costs, and provide superior service to your customers.
Visions of a supply chain.
A supply chain is a sequence of processes and flows that take place within and between different stages and combine to satisfy a customer's need for a product.
Push/Pull View Processes are divided into two categories depending on whether they are executed in response to a customer request or in anticipation of it.
Cycle vision. The processes are divided into series of cycles, each carried out at the interface of two successive stages. Each cycle occurs between two successive stages of a supply chain. Not all supply chains have the same cycles (For example, some manufacturers who sell through e-commerce do not have the finished product replenishment cycle in their supply chain).
Some examples of these cycles are:
Artificial intelligence in the supply chain
The logistics sector's investments in artificial intelligence are beginning to gain weight in the industry. The benefits of the contribution of AI in the Supply Chain are clear: cost optimization, risk mitigation, greater efficiency in operations, better forecasts, faster deliveries thanks to route optimization and more optimal personalization for the end customer. Artificial intelligence applied to demand planning[14] allows for much more precise inventory management. Various case studies show reductions in forecast errors of between 20% and 50%,[15] which translates into fewer stockouts and less excess inventory.
The management of data on operations, together with an artificial intelligence system that seeks constant optimizations of processes and operations, is a great benefit. However, the investments required in this field mean that they are not accessible to all companies.
References
[1] ↑ a b c Sunil Chopra and Peter Meindl (2006). Supply Chain Management. 3° Edition. Capítulo 1. Entender qué es la cadena de suministro. Pearson/Prentice Hall.
[4] ↑ David Jacoby (2009), Guide to Supply Chain Management: How Getting it Right Boosts Corporate Performance (The Economist Books), Bloomberg Press; 1st edition, ISBN 978-1576603451.
[5] ↑ Andrew Feller, Dan Shunk, & Tom Callarman (2006). BPTrends, March 2006 - Value Chains Vs. Supply Chains.
[6] ↑ a b David Blanchard (2010), Supply Chain Management Best Practices, 2nd. Edition, John Wiley & Sons, ISBN 9780470531884.
[7] ↑ James B. Ayers (2000) Handbook of Supply Chain Management, St. Lucie Press. ISBN 1574442732.
[8] ↑ Wincel, Jeffrey P. (2004). Lean supply chain management a handbook for strategic procurement (3. [Dr.]. edición). New York, NY: Productivity Press. p. 197. ISBN 1-56327-289-X. Consultado el 24 de septiembre de 2017.: https://archive.org/details/leansupplychainm0000winc
[10] ↑ Casanovas, August (2011). Estrategias avanzadas de compras y aprovisionamientos : lean buying y outsourcing. Barcelona: Profit. p. 99. ISBN 9788492956531. |fechaacceso= requiere |url= (ayuda).
[11] ↑ Gastón Cedillo y Sánchez, C. (2008). Análisis dinámico de sistemas industriales. Editorial Trillas, México. ISBN 978-9682481963.
The sequence of events that cover the entire life cycle of a product or service from when it is conceived until it is consumed.[6]
The "Supply Chain" is not limited to manufacturing companies, but has been expanded to include both "tangible products" and "intangible services" that reach the consumer,[7] which in turn require product and service inputs.
The Mexican Association of Logistics and Supply Chain A.C. (AML) defines "Supply Chain" as:.
Supply chain is a dynamic system of organizations interconnected by process flows that involve material, financial, human and information resources, which favors the collective intelligence of its members through the use of logistics, to achieve
fluid coordination and collaboration in the synchronization of processes that seek to satisfy the requirements of the final consumer, maximizing the total value created for the organization on a continuous basis.
Internally, in a manufacturing company, the Supply Chain connects the entire Organization but especially the commercial functions (Marketing, Sales, Customer Service) of supply of inputs for production (Supply), production (Production Control, Manufacturing) and storage and distribution of finished products (Distribution), with the objective of aligning internal operations towards customer service, reducing cycle times and minimizing the capital necessary to operate.
The Supply Chain, like all the activities of the Organization, accepts the existence of innovative Philosophies and incorporates them into its work, so it is easy to find terms strengthened by them such as "Lean Supply Chain Management"[8] or "Lean six Sigma Logistics".[9].
Macro processes and functions of the Supply Chain within a Company
According to Sunil Chopra and Peter Meindl,[1] the macro processes within a manufacturing or service company or organization and the sub-processes they include are:
The functions that make up the internal Supply Chain in a manufacturing company are:.
There is no consensus about whether or not these 5 functions should report hierarchically to the same Management / Direction, but there is consensus in the sense that they must operate in coordination so that the internal Supply Chain (or internal Logistics) is efficient and effective.
Synchronization is very important in these chains so that waste does not occur, measured as inventory, time or customer service failure.[11] It helps to have a good prediction of demand to avoid causing surpluses or shortages of finished products. A failure in this prediction will cause a so-called bullwhip effect (also called bullwhip effect). Therefore, it is said that the impact of an action on a supply chain is directly proportional to its delay in the propagation of communication.
Real-time tracking in cargo logistics offers many benefits for companies. By optimizing routes, effectively managing fleet, reducing costs, improving visibility, optimizing inventory management, improving customer satisfaction, streamlining processes, making data-driven decisions, reducing risk, and improving collaboration, this technology can transform your supply chain and give you a competitive advantage.[12] Investing in real-time tracking can help you improve operational efficiency, reduce costs, and provide superior service to your customers.
Visions of a supply chain.
A supply chain is a sequence of processes and flows that take place within and between different stages and combine to satisfy a customer's need for a product.
Push/Pull View Processes are divided into two categories depending on whether they are executed in response to a customer request or in anticipation of it.
Cycle vision. The processes are divided into series of cycles, each carried out at the interface of two successive stages. Each cycle occurs between two successive stages of a supply chain. Not all supply chains have the same cycles (For example, some manufacturers who sell through e-commerce do not have the finished product replenishment cycle in their supply chain).
Some examples of these cycles are:
Artificial intelligence in the supply chain
The logistics sector's investments in artificial intelligence are beginning to gain weight in the industry. The benefits of the contribution of AI in the Supply Chain are clear: cost optimization, risk mitigation, greater efficiency in operations, better forecasts, faster deliveries thanks to route optimization and more optimal personalization for the end customer. Artificial intelligence applied to demand planning[14] allows for much more precise inventory management. Various case studies show reductions in forecast errors of between 20% and 50%,[15] which translates into fewer stockouts and less excess inventory.
The management of data on operations, together with an artificial intelligence system that seeks constant optimizations of processes and operations, is a great benefit. However, the investments required in this field mean that they are not accessible to all companies.
References
[1] ↑ a b c Sunil Chopra and Peter Meindl (2006). Supply Chain Management. 3° Edition. Capítulo 1. Entender qué es la cadena de suministro. Pearson/Prentice Hall.
[4] ↑ David Jacoby (2009), Guide to Supply Chain Management: How Getting it Right Boosts Corporate Performance (The Economist Books), Bloomberg Press; 1st edition, ISBN 978-1576603451.
[5] ↑ Andrew Feller, Dan Shunk, & Tom Callarman (2006). BPTrends, March 2006 - Value Chains Vs. Supply Chains.
[6] ↑ a b David Blanchard (2010), Supply Chain Management Best Practices, 2nd. Edition, John Wiley & Sons, ISBN 9780470531884.
[7] ↑ James B. Ayers (2000) Handbook of Supply Chain Management, St. Lucie Press. ISBN 1574442732.
[8] ↑ Wincel, Jeffrey P. (2004). Lean supply chain management a handbook for strategic procurement (3. [Dr.]. edición). New York, NY: Productivity Press. p. 197. ISBN 1-56327-289-X. Consultado el 24 de septiembre de 2017.: https://archive.org/details/leansupplychainm0000winc
[10] ↑ Casanovas, August (2011). Estrategias avanzadas de compras y aprovisionamientos : lean buying y outsourcing. Barcelona: Profit. p. 99. ISBN 9788492956531. |fechaacceso= requiere |url= (ayuda).
[11] ↑ Gastón Cedillo y Sánchez, C. (2008). Análisis dinámico de sistemas industriales. Editorial Trillas, México. ISBN 978-9682481963.